Determinants of MNE Subsidiaries Decisions to Set Up Own R&D Laboratories - Theory and Evidence

Constantina Kottaridi, Marina Papanastassiou and Christos Pitelis

No DYNREG38, Papers from Economic and Social Research Institute (ESRI)

Abstract: We explore the determinants of MNE subsidiaries decisions to set-up own R&D laboratories drawing on evidence from UK regions. In this context, we also test for the interaction between firm's internal and external environments. We also integrate extant IB and strategic management literatures and incorporate recent debates in New Economic Geography (NEG) in specifying the 'external environment'. We find support for the role of firm's 'productive opportunity' and predictions of the NEG on the basis of an analysis of primary data. We discuss implications for managerial practice and government regional policies.

Keywords: MNE subsidiaries; R&D laboratory; internal and external environment; productive opportunity (search for similar items in EconPapers)
Pages: 33 pages
Date: 2009
New Economics Papers: this item is included in nep-ino, nep-sbm and nep-ure
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Working Paper: Determinants of MNE subsidiaries decision to set uo own R&D laboratories: Theory and Evidence (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:esr:wpaper:dynreg38

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